Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

Pensions regulator unveils consultation on defined benefit funding

Open-access content Tuesday 20th December 2022
web_Businesspeople-discussing-documents_credit_Jirapong-Manustrong_shutterstock_751298770.jpg

A draft funding code of conduct and consultation on defined benefit (DB) pension schemes has been unveiled by The Pensions Regulator, requiring trustees to think carefully about risk management to improve security for their members.

Under the draft code and consultation, schemes will be expected to set a long-term objective and a “journey plan” for achieving it. The regulator expects schemes will reduce their reliance on sponsoring employers as they reach maturity. 

The consultation requires trustees to raise the bar for evidence on risk-taking by considering cash, prospects and contingent assets. They should also set their funding assumptions consistently with those plans, allow for future accrual where they can justify it and assess “reasonable affordability” when considering recovery plans.

Under its “twin-track approach”, the regulator will filter out schemes that require minimal engagement and intervene when schemes are not complying with regulations.

Lane, Clark & Peacock partner Jon Forsyth praised the “pragmatic package, allowing some schemes to continue to take investment risk for much longer where appropriate, and indicating that recovery plans of up to six years might be acceptable even if employers can afford to pay off deficits quicker than that”. 

The drafts are due to be finalised and come into force next October.

Image credit | Jirapong Manustrong/ Shutterstock

You may also be interested in...

web_Businesswoman-holding-tablet_redit_NDAB-Creativity_shutterstock_2145880191.png

Millions opt to delay retirement

Around 2.5 million people aged over 55 and still in work will have to delay their retirement due to the cost of living crisis, according to a survey.
Tuesday 20th December 2022
Open-access content
web_Inclusion-words-on-wooden-stones_credit_Fotema_shutterstock_2137280263.png

Companies confused on diversity and inclusion

Financial-service firms are failing to understand diversity and inclusion (D&I) as crucial culture issues, according to research by the Financial Conduct Authority (FCA).
Tuesday 20th December 2022
Open-access content
web_Healthy-coral-reef-Misool-Indonesia_credit_Ethan-Daniels_shutterstock_1074328949.png

Risks from nature loss ignored

Europe’s largest banks are failing to take the global biodiversity crisis seriously by not considering financial risks from nature loss.
Tuesday 20th December 2022
Open-access content
web_Annual-report-statistics_credit_LunaKate_shutterstock_2041846232.png

Corporates fail to disclose

Nearly 30,000 major businesses with assets worth $25 trillion did not meet requests for information from international charity CDP about their environmental disclosures this year.
Tuesday 20th December 2022
Open-access content
web_Working-with-money_credit_ShutterstockProfessional_shutterstock_471716921.png

Top global asset owners break $25trn barrier

The world’s 100 largest asset owners are now responsible for US$25.7trn, according to the latest research.
Tuesday 13th December 2022
Open-access content
web_Businessman-shields-earth_credit_Proxima-Studio_shutterstock_1951133275.png

Investors prioritise climate action despite lacking trust in reporting

Tackling climate change should be a major priority for companies when confronting threats to their business, according to a major survey of global investors.
Tuesday 13th December 2022
Open-access content
Also filed in
News
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ